05.04.2023

On April 5, the President of Uzbekistan Shavkat Mirziyoyev chaired a videoconference on the construction of new housing and the priorities of a mortgage program for 2023.

Over the past six years, the population of our country has increased by 5.5 million people and exceeded 36 million. A large-scale housing construction has been launched to create decent living conditions for people.

In particular, since 2017, 326,000 new housing units have been commissioned. Housing per capita increased by 18 %.

To this end, over the past three years, banks have allocated 33 trillion Uzbek soums of mortgage loans to 210,000 families. 73 thousand low-income families have received subsidies in the amount of 1.3 trillion Uzbek soums for the payment of the first installment and interest on the loan.

As a result of the introduction of market principles into the industry, hundreds of private development companies have been formed. 11 large clusters have been created for the construction of multi-storey buildings using prefabricated reinforced concrete structures. By creating conditions for entrepreneurs, production has increased and the cost of such materials as cement, gas-block, tiles, porcelain stoneware has decreased.

This work was consistently continued last year, when multi-storey buildings for 60,000 apartments were built. The program for the construction of 31 massifs "Yangi Uzbekistan" (‘New Uzbekistan’)  has started.

The meeting critically reviewed the implementation of this program. It is indicated that as a result of the correct selection of land plots and the creation of infrastructure, exemplary work is being carried out in Andijan and Khorezm, but in other regions, the construction of arrays is stalling. In this regard, a disciplinary sanction was announced against the deputy khokims for the construction of Bukhara, Kashkadarya, Navoi, Namangan, Samarkand, Surkhandarya, Syrdarya, Fergana and Tashkent regions. The responsible officials were instructed to resolve the issues related to infrastructure, construction and sale of apartments.

In general, having built 90,000 housing units, it is planned to increase the volume of housing construction by 1.5 times this year. The President stressed that this would give a great impetus to the growth of economic indicators in each region. Therefore, new opportunities have been identified for the population and developers in four areas.

Firstly, in order to expand the coverage of mortgages, it will be possible to obtain a loan for persons with insufficient official income. When determining their solvency, the turnover on their bank cards, the funds paid by them for rent, utilities and other expenses will also be taken into account.

The citizens who have paid a higher down payment will be able to get a cheaper loan from a bank. In order to accelerate the use of funds allocated for subsidies, the duration of the subsidy will be reduced from 12 months to 4 months. At the same time, the citizens who have not used their certificate during these months will be given the right to reapply for a subsidy.

The Ministry of Economy and Finance has been given instructions on financing mortgage loans and subsidies.

Another project aimed at providing the population with affordable housing is the program «My First Home». For this, a special housing company will be created under the Ministry of Construction. In Zangiata district of the Tashkent Region, 36 hectares of land will be allocated, on which it is planned to build 58 apartment buildings, social facilities, and entertainment centers. Due to the sale of retail and commercial space to entrepreneurs, it is possible to reduce the cost of apartments.

The responsible officials were instructed to complete the development of a master plan for the massif, to conduct its expert and public discussion.

Secondly, in order to reduce the cost of construction for the period up to 2025, the customs duty on the import of wood, plywood, wooden formwork and glass will be canceled. Customs duty relief for high-grade cement will be extended for another year. Due to this, the cost of housing construction is expected to decrease by 5 %.

Contracting organizations will be given the right to use each floor of a house under construction as collateral, as well as to take a loan for each floor. Construction companies will be able to receive compensation and guarantee not for the whole array, but for one separate apartment building.

The practice of refinancing bank loans by the state will be continued.

Thirdly, the availability of communications is the main issue in the timely commissioning and sale of housing. In this regard, the Ministry of Economy and Finance was instructed to allocate the necessary funds for infrastructure, and the khokims of the regions were instructed to ensure the construction of internal roads in new areas.

In cities with a large number of dilapidated housing, the demand for a renovation program is growing. Uzbek President stressed that there should be a legal basis for this and proposed to develop a draft law on renovation.

Another problem is the discrepancy between the scale of construction in some regions and the capabilities of their infrastructure. For example, the population of Tashkent annually increases by 100 thousand people, and 20 thousand new apartments are required per year. Wastewater treatment plants of the city operate with an excess of normal load.

In this regard, it was noted that from now on, investors-developers can also be involved in the expansion of water supply and sewerage networks, electricity networks and gas pipelines, and the improvement of road infrastructure.

Fourth, the current year’s goal of building 90,000 housing units creates a large market for building materials companies. At the same time, it is indicated that half of the 3,000 enterprises for the production of reinforced concrete do not have their own laboratories.

The President stressed that these products are the main factor affecting the quality of houses, and demanded the creation of modern laboratories at all such enterprises.

In recent months, seismic activity has been observed both in the world and in our region. In this regard, it was decided to introduce a procedure from May 1, according to which, before the start of construction, the building site is subject to mandatory engineering and geological expertise, and buildings that are subject to increased seismic safety requirements will be built exclusively by enterprises with a high rating.

The President also touched upon the problems arising in the drainage system of cities, the officials in charge were instructed to eliminate the shortcomings.

“Mortgage is an important social issue and a great stimulus for the growth of our economy. Therefore, it is necessary to speed up construction work, complete them in a timely manner and with high quality”, Shavkat Mirziyoyev has said.

The Prime Minister and his deputies, ministers and khokims presented information on the issues discussed at the meeting.